Which of the Following Is Not True About Leverage

question 8

Multiple Choice

Which of the following is not true about leverage?

• A) Operating leverage influences the top half of the income statement, determining EBIT.
• B) Financial leverage deals with the bottom half of the income statement, determining EPS.
• C) Combined leverage utilizes the entire income statement, showing the impact of change in volume on EBIT.
• D) none of the other answers are correct

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